Is Bangladesh Imploding? The 3 Mistakes By Yunus, Key Players & Where They Stand

Last Updated:March 04, 2025, 17:56 IST

Bangladesh, which was giving tough competition to countries like India in the textile garment sector, is now going through its worst economic and food crisis. Poor decisions by the Yunus government have left the country in a precarious position

Muhammad Yunus has been delaying announcing the elections. (AP File)

From the Army to students and even the Bangladesh ist Party (BNP), Muhammad Yunus, a Nobel Peace laureate and head of Bangladesh’s interim government, has been isolated by all major players, but he is keen to stay on. The other key player, former PM and Awami League chief Sheikh Hasina, is in exile.

Since the ouster of Hasina, her staunch critic Yunus had emerged as a widely accepted choice to lead the country. Political parties other than the Awami League, intellectuals, and the Army backed Yunus as the interim leader until the general elections were announced.

However, seven months on, the decisions made by the Yunus-led interim government have made Bangladesh even weaker. Bangladesh, which was giving tough competition to countries like India in the textile garment sector, is now going through its worst economic and food crisis. Poor decisions by the Yunus government have left the country in a precarious position.

So the key question now is – Is Bangladesh imploding?

LOSING SUPPORT

The Army and students’ group which were backing Yunus have now openly started raising doubts over his leadership and his intention to call elections. The Army chief is keeping the interim government in constant check by putting pressure on them to announce the elections, which is not going down well with many advisers in the Yunus government.

Nahid Islam, the face of the protest against Hasina and also part of the government, has stepped down and is likely to become the convener of a new political front. The Citizen Party (NCP) will be headed by Islam. This is a second setback for Yunus, who seems in no mood to announce elections soon, as his disciple has floated a political front.

The other major political force, the BNP has also given statements against Yunus. BNP Secretary General Mirza Fakhrul said the public would not tolerate an interim government staying in power for a long time. BNP Chief Khaleda Zia also demanded early elections with minimal reforms to repair the state. Khaleda Zia addressed BNP cadres virtually from London.

THE 3 MISTAKES

Here’s why Yunus is losing support:

Elections: Since the beginning, Yunus had promised early elections, but so far, he has not been able to give an exact date or month for it, which has raised many eyebrows. The Army and political parties are concerned about this. The Army and BNP want elections to be conducted at the earliest with minimal reforms.Money matters: Bangladesh is failing as a country. It is in a dire condition with regards to foreign investment and donations. After USAID, Switzerland also stopped its donations to Bangladesh, which has come as a huge blow. In the first six months, foreign investment has come down to almost one-fourth compared to the same period of the previous year. It has decreased by 71%. The country has also witnessed a 13.08% decline in foreign asset inflows, an actual drop of USD 532.38 million (Economic Relations Department). Trading on the country’s main stock market, the Dhaka Stock Exchange, has dropped back to the 3 billion Taka mark.According to the Bangladesh Bureau of Statistics (BBS), food inflation was 10.72% in January this year, and non-food inflation was 9.32%. Bangladesh Bank is following a contractionary monetary policy, which is reducing excess money supply. The government has stopped printing new money, which is believed to be helpful in controlling inflation. This has resulted in a shortage of cash in the market. The general living system is being disrupted in real terms due to a lack of work and economic contraction. Inflation is still above 9%.This is largely due to lack of trust from investors in Yunus’s policies, as he is an unelected, unpopular leader leading a country.Flip flops: Yunus’s flip-flops on foreign policy, by taking on countries like India and creating an atmosphere of fear in the minds of investors and by increasing closeness with a rogue nation like Pakistan, has landed him in trouble.

Meanwhile, investors and foreign nations still remain confused about who is actually calling the shots in Bangladesh.

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